EXTERNAL PRESSURES AMID DOMESTIC RESILIENCE
The financial year ended 31 March 2025 unfolded amid persistent global and regional uncertainties. The global business environment remained subdued, with inflationary pressures, tight financial conditions and ongoing geopolitical conflicts weighing on consumer sentiment and industrial demand across the region.
Despite external headwinds from global inflationary trends and trade tensions, the domestic economy proved to be resilient. Malaysia’s economy expanded by 4.4% year-on-year in the first quarter of 2025, moderating from the 4.9% growth recorded in the preceding quarter. Malaysia’s exports rose steadily in 2024 and early 2025, driven by resilient demand for electrical and electronic products. Sustained household spending, underpinned by steady employment and wage growth, provided a buffer against external shocks. Inflation remained manageable, with headline inflation projected between 2% and 3.5% for 2025, allowing Bank Negara Malaysia to maintain its overnight policy rate at 2.75%.
OPERATING IN A VOLATILE MARKET LANDSCAPE
While Malaysia’s economy remained steady, PMMA encountered softer demand and lower sales in key export markets, particularly for our Vacuum Cleaner and Home Shower segments as demand weakened in markets such as the Middle East, Thailand, Brunei and Vietnam. Although Malaysia’s export recovery provided some relief, overall moderation in regional growth and lingering uncertainty added pressure to our business performance.
Against this backdrop, PMMA reported revenue of RM822.8 million for the financial year ended 31 March 2025, representing a 9.2% decrease compared to the previous year. Profit before tax also declined by 51% to RM51.9 million, primarily influenced by weaker export sales, particularly in the Middle East, and lower domestic and ASEAN demand for key products.
Foreign exchange volatility also weighed on performance. During parts of the year, the Malaysian ringgit appreciated against the US dollar, driven by narrowing interest rate differentials and policy stabilisation measures by Bank Negara Malaysia. While this reduced the cost of USD- denominated imports, it weighed on export earnings and narrowed profit margins, a common challenge for export- oriented businesses. Companies with cross-border supply chains or revenue linked to the US dollar, including PMMA, faced challenges in managing currency translation risks and maintaining profitability.
Reflecting these pressures, PMMA recorded foreign exchange losses of RM9.9 million, a sharp reversal from the RM4.9 million gain in the prior year. The absence of a one-off RM11.9 million income recorded in FYE 2024 also contributed to the year’s lower earnings. Nevertheless, PMMA’s disciplined focus on cost control and product cost optimisation helped mitigate margin erosion and maintain operational stability.
STAYING THE COURSE ON STRATEGIC REALIGNMENT
PMMA continued to advance its product portfolio realignment strategy, although progress was tempered by market conditions. Promotional activities for our Point of Entry (“POE”) water solutions in Indonesia have been rolled out, and we are closely monitoring their performance to refine our approach as needed. Notably, the launch of the first KDK-branded home shower series in Singapore helps establish our presence in the market while responding to evolving consumer preferences and strengthening regional brand recognition.
We have also restructured our production capacity to enhance efficiency across key product segments. This reallocation of resources supports our drive to deepen operational focus and improve productivity throughout our manufacturing operations.
UPHOLDING DIVIDEND COMMITMENT
In line with our commitment to delivering long-term shareholder value, the Board has approved a dividend of 62 sen per share for FYE 2025, comprising a proposed final dividend of 47 sen and an interim dividend of 15 sen already paid. This reflects our continuous, prudent and sustainable payout strategy, which is aligned with earnings performance and prevailing market conditions.
PROGRESSING SUSTAINABILITY AND DIGITAL AMBITIONS
PMMA continues to advance its sustainability agenda under the Panasonic GREEN IMPACT framework. In FYE 2025, we enhanced our Scope 3 emissions reporting and extended solar panel installation efforts, demonstrating tangible progress toward our Net Zero CO2 goal. Internally, we remain focused on enhancing energy efficiency, reducing waste and building a future-ready workforce through upskilling in automation, robotics and predictive maintenance.
Digitalisation also remains a core enabler of our transformation. Efforts under the Industrial Internet of Things (IIoT) framework continue to progress, aiming to improve factory visibility, operational efficiency and data-driven decision-making.
We also strengthened our digital risk management framework. During the year, PMMA completed an internal cybersecurity audit and continues to undergo regular hygiene checks to ensure compliance with best practices. These efforts form part of our broader commitment to safeguarding operational continuity and protecting stakeholder trust in an increasingly digital operating environment.
GOVERNANCE AND BOARD RENEWAL
The Board maintained active oversight of risk management, particularly in response to heightened currency volatility and supply chain disruptions. These challenges reinforced the importance of strengthening business continuity planning and operational resilience.
During the year, Mr. Shinichi Hayashi stepped down as Non-Independent Non-Executive Director, and we welcomed Mr. Masaru Fujimoto to the Board in his place. On behalf of the Board, I would like to extend our appreciation to Mr. Hayashi for his contributions and welcome Mr. Fujimoto, who brings fresh perspectives and valuable experience.
At the upcoming Annual General Meeting, Tan Sri Hasmah binti Abdullah and Ms Siew Pui Ling will retire and not seek re-election. Tan Sri Hasmah, who has served as an Independent Director since October 2013, has brought insightful guidance, independent judgment, and strong leadership to the Board and its Committees, particularly in her role as Chairman of the Remuneration Committee. The Board is deeply grateful for her leadership, integrity and the depth of experience she brought to our deliberations. We wish her continued success and good health in all her future undertakings.
The Board also extends its heartfelt appreciation to Ms Siew for her exceptional service since 1991. Rising through the ranks by virtue of her professionalism, leadership and deep understanding of the business, she played a key role in the Company’s growth, particularly in Sales & Marketing, Logistics, Product Planning and Human Resources. Her leadership, operational insight and passion have been instrumental in shaping the Company’s performance and culture. We extend our sincere gratitude to Ms Siew and wish her continued success in her future endeavours.
Although the Board will be smaller following their retirement, the Board remains well-positioned to provide effective strategic guidance, supported by a strong foundation of experience and collective capability.
LOOKING AHEAD
While the operating landscape continues to pose uncertainties, we take confidence in the foundations laid through our strategic realignment, cost management discipline, and continued investments in digital and sustainable growth. Our focus in FYE 2026 will be on reigniting momentum in our core segments, accelerating product innovation and enhancing competitiveness in regional markets.
As part of broader restructuring efforts announced by Panasonic Holdings Corporation, the Group is implementing strategic changes at the global level. These reflect a shift in direction for the wider organisation, and the impact on PMMA is expected to be minimal. We continue our focus on strengthening our core capabilities, operational resilience and long-term competitiveness. Our business priorities and workforce planning remain aligned with the needs of our market and our strategic ambitions.
On behalf of the Board, I would like to thank our shareholders for their continued trust, our employees for their strong commitment, and our partners and customers for their support throughout the year. We stay committed to delivering sustainable value as we navigate the next phase of our journey.
Dato’ Azman Bin Mahmud
Chairman
Independent Non-Executive Director